How Are Franklin, TN Car Loan Rates Determined?
Several factors contribute to your Tennessee auto loan interest rate, including the loan amount, your credit score, your income, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Franklin dealership might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate, the higher your monthly bill is and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more overall.
Can I Lower My Car Loan Rate in Franklin, TN?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before having to apply for a car loan in Franklin, TN. If you've put in your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one thing you have a lot of control over. Most Franklin car loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms will tempt many borrowers because they usually mean a lower monthly payment. But longer terms are also likely to come with higher interest rates. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you decide what you might be able to afford.
If you have less than stellar credit, raising your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and how you can quickly bring it up. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in Tennessee.
Taking the time to hunt down the right lender can also help you secure a lower rate. While lenders will look at the same information, you'll likely receive a different interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Franklin, TN — even without a high income or credit score. You don't want to choose the first offer you get because there could be a better one right around the corner. And, some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Franklin, TN with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Franklin, TN regardless of what type of vehicle you're buying or your credit score. We'll present you with up to four loans at once so you can find the best deal. Fill out our simple and secure online application, choose the best loan for you, and visit your Franklin dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!